14 ID Trends 2020
Profitability Trends from page 12
Reinvent skills and capabilities
The path to growth in the next decade will require new talent and bolder strategies . Life insurers must respond by capturing more value from existing assets and pursuing targeted M & A .
By 2030 , 44 percent of insurance work activities have the potential to be automated . Roles that focus on repetitive work and manual processes will cease to exist in their present form , while technology and digitally savvy workers will increase in value . Emotional , interpersonal , and social skills will also become more critical , especially for customer-facing agents who can help consumers address their changing financial and coverage needs . However , these workforce shifts will not eliminate jobs — our research indicates net new jobs will be created due to advances in automation — but instead change the nature of the work . The COVID-19 pandemic has only accelerated such trends .
Digital talent war In the war for digital talent , life insurance companies are at a disadvantage . The financial-services industry trails other sectors in volume of digital and tech talent . In fact , 80 percent of millennials say they have limited knowledge of the insurance industry , 9 a troubling sign for an industry in which 25 percent of employees believe themselves to be within five to ten years of retirement . However , COVID-19 and recent social unrest present an opportunity for life insurers to reframe their societal purpose , which may help recruit and retain exceptional talent .
Seventy-five percent of global executives agree that upskilling and reskilling employees must account for at least half of their skills gap solution . Life insurance companies that prioritize those efforts and develop operating models capable of responding to changing demands will position themselves at the forefront of “ future-proofing ” their workforces .
FTE 1 weighted percent of technically automatable activities by industry
Manufacturing Mining Retail trade Agriculture , forestry , fishing and hunting Accommodation and food services Wholesale trade Transportation / warehousing Financial services / insurance Construction Utilities Real estate / rental and leasing Information Manufacturing Administrative / support / waste management Arts , entertainment , and recreation Professional , scientific , and technical services Management of companies and enterprises Health care / social assistance Educational services
1 ] Full-time equivalent . Source : McKinsey automation model ; McKinsey Future of Work .
32 %
35 %
35 %
38 %
38 %
37 %
44 %
43 %
43 %
42 %
41 %
40 %
47 %
47 %
47 %
49 %
52 %
52 %
~ 44 % of work activities have the potential to be automated
63 %
Noncommunicable diseases — those more closely linked to lifestyle and behavior , such as diabetes , heart disease , and lung cancer — will account for 71 percent of all annual deaths globally and represent an increasing proportion of mortality risk .
McKinsey & Company Report , September 29 , 2020 By Pierre-Ignace Bernard , Kweilin Ellingrud , Jonathan Godsall , Bernhard Kotanko , and Andrew Reich
[ 1 ] US Census Bureau , March 13 , 2018 , census . gov . [ 2 ] Johnny Wood , “ Retirees will outlive their savings by a decade ,” World Economic Forum , June 13 , 2019 , weforum . org . [ 3 ] World Population Ageing 2015 : Highlights , United Nations , Department of Economic and Social Affairs , Population Division , 2015 , un . org . [ 4 ] “ Noncommunicable diseases ,” World Health Organization , June 1 , 2018 , who . int . [ 5 ] 2020 DXC insurance survey report : The voice of the US customer , dxc . technology .[ 6 ] Integrated Annual Report 2019 , Discovery , 2019 , discovery . co . za . [ 8 ] “ Household debt ,” Organisation for Economic Co-operation and Development , 2020 , data . oecd . org . [ 9 ] Millennial generation attitudes about work and the insurance industry , a joint paper from The Institutes and Griffith Insurance Education Foundation , 2012 , theinstitutes . org .